Azerbaijan has embarked upon implementing its quota of decrease in oil production in line with the agreement reached last month by the OPEC-non-OPEC alliance of producers, the Azerbaijani Oil Ministry spokeswoman Zamina Aliyeva told Sputnik on Friday.
On April 12, the Organization of the Petroleum Exporting Countries (OPEC) and non-cartel oil producers agreed to a collective reduction in output by 9.7 million barrels per day throughout May-June in a bid to stabilize the market.
“Effective today, Azerbaijan begins the process of reducing oil production as part of its OPEC+ commitments. Oil production reduction quotas have been proportionally distributed between [the state oil company] SOCAR and oil producers operating under production distribution agreements and similar oil contracts,” Aliyeva said.
Under the OPEC+ deal, the signatories have committed to cutting production by 23 percent throughout May-June, then by 18 percent throughout July-December, and then by 14 percent thereafter until April 2022, with the baseline level set on October 2018. Russia, Saudi Arabia and Mexico got individual quotas.
Azerbaijan’s quotas under the deal are 554,000 barrels per day, 587,000 barrels per day and 620,000 barrels per day in the first, second and third phases of implementation, respectively.